SA’s new airfreight policy is courting the private sector to invest in upgrading at key points of entry, particularly at OR Tambo International.
The busy airport processes more than 90% of all air cargo in the country but is saddled with ageing infrastructure, slowing down the movement of goods during peak hours.
Airfreight is important for the transportation of high-value, low-density cargo. The majority of airfreight passes through the three Airports Company of SA (Acsa)-owned airports, OR Tambo International, Cape Town International and King Shaka International, with the latter two supporting acts.
The policy says emphasis should be put on OR Tambo, as it handles more than 90% of airfreight traffic and several infrastructure shortcomings, which include, among other things, landside access and truck movement.
The area of the cargo precinct is “extremely” congested during peak times, leading to delays in accessing the precinct and congestion on the receiving platform.
Decades of underinvestment
The policy says the investment in airfreight infrastructure over the past 40 years at OR Tambo International has been “wholly inadequate”.
The freight operators leasing the airfreight facilities are critical and even scathing in their evaluation of the airfreight infrastructure at OR Tambo International.
This has led to space constraints at OR Tambo, with growth requirements, especially e-commerce, having placed additional stress on facilities.
To add to the dire situation, the department of transport said the air cargo infrastructure is outdated, in poor working condition and does not meet the minimum International Air Transport Association standards and industry best practice standards.
“The freight operators leasing the airfreight facilities are critical and even scathing in their evaluation of the airfreight infrastructure at OR Tambo International,” the policy says.
“The revenue Acsa collects from leasing the airfreight facilities has been insubstantial, which further exacerbates the issue of maintenance, upgrades and improvements. The current short-term leasing periods for the airfreight buildings offered by Acsa discourage the airfreight tenants from making their own investments.”
Private sector urged to invest
According to the policy, the department of transport encourages local and international private sector participation in the provision and operation of airport infrastructure.
It stresses that while the model of public ownership and operation by state departments is still a viable option for socially necessary infrastructure, this is not the same when it relates to higher-order infrastructure because of proven efficiency gains from less bureaucratic and more commercial approaches when the private sector is involved.
“Although the model of public ownership and operation by a state-owned corporation or agency, such as Acsa, has been found effective in infrastructure provision and maintenance, concessions for private financing, construction and operation represent a method for addressing fiscal constraints within such a model,” the policy reads.
“Local and international private sector participation in the provision and operation of airport infrastructure should be encouraged in all spheres of government.”
DHL cautious on investment
Shabnum Dawood, a CEO at DHL Global Forwarding in SA, which has a big airfreight warehouse a stone's throw away from OR Tambo, said the company was open to investing in airfreight infrastructure at the airport, but there were some hurdles.
“My concern right now is that Acsa is making it difficult for us in terms of their policies of leasing the infrastructure. They have changed leasing plans altogether, and going forward, they will be adopting a profit-sharing system,” Dawood said
“That creates complexity for us in the private sector as to whether to invest in Acsa or not.”
DHL handles high-value air cargo mainly from the US, China and Europe.
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